Moving iMage Technologies Announces First Quarter Fiscal 2024 Results
Revenue increased 13%; gross profit increased 17%; gross margin of 27.4%; GAAP and Non-GAAP EPS of $0.04
Moving iMage Technologies, Inc. (NYSE:MITQ), ("MiT"), a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today announced results for its first quarter ended September 30, 2023.
"We started the new fiscal year on a strong note with double-digit growth in revenue, gross margin expansion and profits," said Phil Rafnson, chairman and chief executive officer, MiT. "We've been talking about a technology refresh cycle for several quarters now, and this quarter's results were encouraging, as projector replacements and our ADA compliance products were a key driver. We also made progress on several of the newer initiatives that we expect to drive revenue growth and profits over the next several years, including receiving our first orders for LEA Professional's smart power amplifiers.
"From a capital allocation perspective, we put in place a 10b5-1 trading program for our previously approved share buyback at the end of the quarter. This meant that beginning November 1, the number of trading days that we could repurchase shares increased to approximately 250 days per year versus 90 days previously."
First Quarter Fiscal 2024 Highlights (versus Fiscal 1Q23)
- Revenue increased 13.4% to $6.6 million compared to $5.9 million;
- Gross Profit increased of $1.8 million compared to $1.6 million; Gross Margin of 27.4%;
- GAAP Operating Income of $0.4 million compared to $0.0 million;
- GAAP Net Income and Earnings per Share (EPS) of $0.4 million and $0.04 compared to a GAAP Net Loss and Loss per Share of ($0.1) million and ($0.01), respectively;
- Non-GAAP Income and EPS of $0.4 million and $0.04 compared to Non-GAAP Net Income and Income per Share of $0.1 million and $0.01, respectively.
| Select Financial Metrics: FY24 versus FY23 as of 9/30/2023* | |||
| in millions, except for Income (loss) per Share and percentages | 1Q24 |
1Q23 |
Change |
| Total Revenue | $6.6 |
$5.9 |
13.4% |
| Gross Profit | $1.8 |
$1.6 |
16.7% |
| Gross Margin | 27.4% |
26.6% |
|
| Operating Income | $0.4 |
$0.0 |
700.0% |
| Operating Margin | 5.8% |
0.8% |
|
| GAAP Net Income (Loss) | $0.4 |
($0.1) |
nm |
| GAAP Earnings (Loss) per Share | $0.04 |
($0.01) |
nm |
| Non-GAAP Net Income (Loss) | $0.4 |
($0.1) |
nm |
| Non-GAAP Income (Loss) Per Share | $0.04 |
($0.01) |
nm |
| nm = not measurable/meaningful; *may not add up due to rounding | |||
Fiscal 2024 Commentary
"With the Hollywood strikes now behind us, the industry can jump start the production and release schedules and our customers, the cinema owners, which were not able to budget their expenditures with any confidence during the strike, can now start planning as well. Our initial fiscal 2024 guidance, which only included our legacy business and not our newer and emerging businesses, for low double-digit revenue growth with continuing to move towards break-even on a non-GAAP basis, took these delays into account with a down second quarter and a stronger second half of the year.
"That said, we continue to see multiple upside opportunities from our newer initiatives, which aren't included in our current guidance. For instance, our guidance doesn't include any sales of LEA Professional smart power amplifiers, but, in the second fiscal quarter, we already announced two orders for these products, and there is ongoing evaluation and testing occurring at more cinemas as we speak. Additional areas of potential upside include: an ADA compliance product refresh at a large national circuit that we are working to lock down; order growth in Esports shipments above the modest fiscal 2023 levels; National Amusements rolling out CineQC to its international locations; initial sales of MiTranslator and other international sales. Given these significant opportunities to accelerate growth, we plan to provide updates throughout the year as our growth initiatives hit milestones," concluded Rafnson.
| Trended Financials* | |||||||||
| in millions, except for Income (loss) per Share and percentages | 1Q23 |
2Q23 |
3Q23 |
4Q23 |
1Q24 |
|
FY22 |
FY23 |
YTD FY24 |
| Total Revenue | $5.9 |
$4.8 |
$3.7 |
$5.8 |
$6.6 |
|
$18.4 |
$20.2 |
$6.6 |
| Gross Profit | $1.6 |
$1.3 |
$1.0 |
$1.4 |
$1.8 |
|
$4.5 |
$5.3 |
$1.8 |
| Gross Margin | 26.6% |
27.1% |
27.9% |
24.2% |
27.4% |
|
24.3% |
26.3% |
$0.3 |
| Operating Loss | $0.0 |
($0.1) |
($0.5) |
($1.4) |
$0.4 |
|
($1.8) |
($2.0) |
$0.4 |
| Operating Margin | 0.8% |
-2.8% |
-14.1% |
-23.5% |
5.8% |
|
-9.6% |
-9.8% |
$0.1 |
| GAAP Net Income (Loss) | ($0.1) |
$0.0 |
($0.4) |
($1.3) |
$0.4 |
|
($1.3) |
($1.8) |
$0.4 |
| Diluted Income (Loss) Per Share | ($0.01) |
$0.00 |
($0.04) |
($0.12) |
$0.04 |
|
($0.13) |
($0.17) |
$0.04 |
| Non-GAAP Net Income (Loss) | ($0.1) |
$0.0 |
($0.4) |
($0.2) |
$0.4 |
|
($1.5) |
($0.7) |
$0.4 |
| Non-GAAP Diluted Income (Loss) Per Share | ($0.01) |
$0.00 |
($0.04) |
($0.02) |
$0.04 |
|
($0.14) |
($0.07) |
$0.04 |
| nm = not measurable/meaningful; *may not add up due to rounding | |||||||||
Dial-in and Webcast Information
Date/Time: Tuesday, November 14, 2023, 12:00 p.m. ET
Toll-Free: 1-877-407-4018
Toll/International: 1-201-689-8471
Call me™: Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ Link for instant telephone access to the event. Call me™ link will be made active 15 minutes prior to scheduled start time.
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1642336&tp_key=f7b20dddac
Telephone Replay
Replay Dial-In: 1-844-512-2921 or 1-412-317-6671
Replay Expiration: Tuesday, November 28, 2023 at 11:59 p.m. ET
Access ID: 13742538
Telephone Replays will be made available after conference end time.
About Moving iMage Technologies
Moving iMage Technologies is a leading manufacturer and integrator of purpose-built technology solutions and equipment to support a wide variety of entertainment applications, with a focus on motion picture exhibitions, sports venues and eSports. MiT offers a wide range of products and services, including custom engineering, systems design, integration and installation, enterprise software solution, digital cinema, A/V integration, as well as customized solutions for emerging entertainment technology. MiT's Caddy Products division designs and sells proprietary cup-holder and other seating-based products and lighting systems for theaters and stadiums. For more information, visit www.movingimagetech.com.
Forward-Looking Statements
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.
MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands except share and per share amounts) |
||||||||
|
|
|
|
|
||||
|
|
September 30, |
|
June 30, |
||||
|
|
|
2023 |
|
|
|
2023 |
|
|
|
(unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current Assets: |
|
|
|
|
||||
Cash |
|
$ |
6,408 |
|
|
$ |
6,616 |
|
Accounts receivable, net |
|
|
2,042 |
|
|
|
905 |
|
Inventories, net |
|
|
4,752 |
|
|
|
4,419 |
|
Prepaid expenses and other |
|
|
248 |
|
|
|
451 |
|
Total Current Assets |
|
|
13,450 |
|
|
|
12,391 |
|
Long-Term Assets: |
|
|
|
|
||||
Right-of-use asset |
|
|
349 |
|
|
|
415 |
|
Property and equipment, net |
|
|
26 |
|
|
|
28 |
|
Intangibles, net |
|
|
466 |
|
|
|
480 |
|
Other assets |
|
|
16 |
|
|
|
16 |
|
Total Long-Term Assets |
|
|
857 |
|
|
|
939 |
|
Total Assets |
|
$ |
14,307 |
|
|
$ |
13,330 |
|
|
|
|
|
|
||||
Liabilities And Stockholders' Equity |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
2,912 |
|
|
$ |
1,507 |
|
Accrued expenses |
|
|
843 |
|
|
|
618 |
|
Customer deposits |
|
|
2,153 |
|
|
|
3,169 |
|
Lease liability–current |
|
|
288 |
|
|
|
280 |
|
Unearned warranty revenue |
|
|
12 |
|
|
|
26 |
|
Total Current Liabilities |
|
|
6,208 |
|
|
|
5,600 |
|
|
|
|
|
|
||||
Long-Term Liabilities: |
|
|
|
|
||||
Lease liability–non-current |
|
|
76 |
|
|
|
151 |
|
Total Long-Term Liabilities |
|
|
76 |
|
|
|
151 |
|
Total Liabilities |
|
|
6,284 |
|
|
|
5,751 |
|
Stockholders' Equity |
|
|
|
|
||||
Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,685,778 and 10,685,778 shares issued and outstanding at September 30, 2023 and June 30, 2023, respectively |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
12,467 |
|
|
|
12,462 |
|
Accumulated deficit |
|
|
(4,444 |
) |
|
|
(4,883 |
) |
Total Stockholders' Equity |
|
|
8,023 |
|
|
|
7,579 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
14,307 |
|
|
$ |
13,330 |
|
MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except share and per share amounts) |
|||||||
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|
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Three Months Ended |
|
Three Months Ended |
|||
|
|
September 30, |
|
September 30, |
|||
|
|
2023 |
|
2022 |
|||
|
|
(unaudited) |
|
|
|||
Net sales |
|
$ |
6,635 |
|
$ |
5,852 |
|
Cost of goods sold |
|
|
4,816 |
|
|
4,293 |
|
Gross profit |
|
|
1,819 |
|
|
1,559 |
|
|
|
|
|
|
|||
Operating expenses: |
|
|
|
|
|||
Research and development |
|
|
67 |
|
|
66 |
|
Selling and marketing |
|
|
542 |
|
|
610 |
|
General and administrative |
|
|
826 |
|
|
835 |
|
Total operating expenses |
|
|
1,435 |
|
|
1,511 |
|
Operating profit |
|
|
384 |
|
|
48 |
|
Other income (expense) |
|
|
|
|
|||
Unrealized loss on marketable securities |
|
|
— |
|
|
(140 |
) |
Realized loss on marketable securities |
|
|
— |
|
|
(23 |
) |
Interest and other income, net |
|
|
55 |
|
|
20 |
|
Total other expense (income) |
|
|
55 |
|
|
(143 |
) |
|
|
|
|
|
|||
Net profit/(loss) |
|
$ |
439 |
|
$ |
(95 |
) |
|
|
|
|
|
|||
Weighted average shares outstanding: basic and diluted |
|
|
10,685,778 |
|
|
10,928,724 |
|
Net profit/(loss) per common share basic and diluted |
|
$ |
0.04 |
|
$ |
(0.01 |
) |
MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
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|
|
|
|
|
||||
|
|
Three Months Ended |
|
Three Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
|
|
|
|
|
||||
Net profit/(loss) |
|
$ |
439 |
|
|
$ |
(95 |
) |
Adjustments to reconcile net profit/(loss) to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Provision for doubtful accounts |
|
|
1 |
|
|
|
3 |
|
Depreciation expense |
|
|
3 |
|
|
|
2 |
|
Amortization expense |
|
|
14 |
|
|
|
24 |
|
ROU amortization |
|
|
66 |
|
|
|
(5 |
) |
Stock option compensation expense |
|
|
5 |
|
|
|
— |
|
Unrealized loss on investments |
|
|
— |
|
|
|
140 |
|
Realized loss on investments |
|
|
— |
|
|
|
23 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts receivable |
|
|
(1,138 |
) |
|
|
9 |
|
Inventories, net |
|
|
(333 |
) |
|
|
(887 |
) |
Prepaid expenses and other |
|
|
203 |
|
|
|
425 |
|
Accounts payable |
|
|
1,405 |
|
|
|
1,597 |
|
Accrued expenses |
|
|
225 |
|
|
|
28 |
|
Unearned warranty revenue |
|
|
(14 |
) |
|
|
28 |
|
Customer deposits |
|
|
(1,016 |
) |
|
|
(1,312 |
) |
Lease liabilities |
|
|
(67 |
) |
|
|
— |
|
Net cash used in operating activities |
|
|
(207 |
) |
|
|
(20 |
) |
Cash flows from investing activities |
||||||||
Sales of marketable securities |
|
|
— |
|
|
|
493 |
|
Purchases of marketable securities |
|
|
— |
|
|
|
(517 |
) |
Purchases of property and equipment |
|
|
(1 |
) |
|
|
(2 |
) |
Net cash used in investing activities |
|
|
(1 |
) |
|
|
(26 |
) |
|
|
|
|
|
||||
Net decrease in cash |
|
|
(208 |
) |
|
|
(46 |
) |
Cash, beginning of the year |
|
|
6,616 |
|
|
|
2,340 |
|
Cash, end of the year |
|
$ |
6,408 |
|
|
$ |
2,294 |
|
Use of Non-GAAP Measures
The Company uses non-GAAP net income/loss and earnings/loss per share as a measure customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that the elimination of one-time items and non-cash stock compensation expense is useful in evaluating our core operating results and when comparing results to prior periods. However, non-GAAP metrics are not a measure of financial performance under GAAP in the United States of America and should not be considered an alternative to net income as an indicator of our operating performance.
RECONCILIATION OF NON-GAAP ITEMS (in millions except for per share numbers) |
|||||||||
| in millions, except for Income (loss) per Share | 1Q23 |
2Q23 |
3Q23 |
4Q23 |
1Q24 |
|
FY22 |
FY23 |
YTD FY24 |
| GAAP Net Income (Loss) | ($0.1) |
$0.0 |
($0.4) |
($1.3) |
$0.4 |
|
($1.3) |
($1.8) |
$0.4 |
|
|
|
|
|
|
|
|
|
|
| Other Income (expense) | ($0.2) |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
$0.1 |
$0.0 |
$0.0 |
| Impairments | $0.0 |
$0.0 |
$0.0 |
$0.6 |
$0.0 |
|
$0.0 |
$0.6 |
$0.0 |
| SNDBX Write-off | $0.0 |
$0.0 |
$0.0 |
$0.4 |
$0.0 |
|
$0.0 |
$0.4 |
$0.0 |
| Stock Compensation Expense | $0.0 |
$0.0 |
$0.0 |
$0.1 |
$0.0 |
|
$0.4 |
$0.1 |
$0.0 |
| PPP Adjustment | $0.0 |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
($0.7) |
$0.0 |
$0.0 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Net Income (Loss) | $0.1 |
$0.0 |
($0.4) |
($0.2) |
$0.4 |
|
($1.5) |
($0.7) |
$0.4 |
| Non-GAAP Diluted Income (Loss) Per Share | $0.01 |
$0.0 |
($0.04) |
($0.02) |
$0.04 |
|
($0.14) |
($0.07) |
$0.0 |
| Shares O/S | 10.9 |
11.0 |
11.0 |
10.9 |
10.7 |
|
10.6 |
10.9 |
10.7 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231114785533/en/